World stocks drop after threat of US bank penalties and Wall St warning

by Jamie Henry08 Jul 2014

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World stocks drop after threat of US bank penalties and Wall St warning

European markets are trading down so far Tuesday following reports that more banks may be investigated by US authorities for breaking trade sanctions. After the $9 billion fine for France’s BNP Parisbas, Germany’s second largest lender Commerzbank was rumoured to be discussing a settlement with US authorities. Europe’s shares were further dimmed by an executive board member from the European Central Bank shunning the prospect of an asset-buying program, saying it should be a ‘last resort’. Asian shares were mixed ahead of Chinese economic data and the Fed’s monetary report this week, but there was concern after Wall Street analysts suggested the equities rally could reverse. Read the full story.